Enphase Energy Inc (ENPH) 2019 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Enphase Energy Fourth Quarter 2019 Financial Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today, Adam Hinckley. Please go ahead, sir.

女士們，先生們，感謝你們的支持，歡迎來到 Enphase Energy 2019 年第四季度財務業績電話會議。（操作員說明）請注意，今天的會議正在錄製中。（操作員說明）我現在想把會議交給今天的演講者 Adam Hinckley。請繼續，先生。

Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's fourth quarter 2019 results. I'm the Head of Investor Relations for Enphase Energy, and I'm pleased to be hosting my first earnings call for the company. On today's call are Badri Kothandaraman, Enphase's President and Chief Executive Officer; Eric Branderiz, Chief Financial Officer; and Raghu Belur, Chief Products Officer.

下午好，感謝您參加今天的電話會議，討論 Enphase Energy 2019 年第四季度的業績。我是 Enphase Energy 的投資者關係主管，我很高興為公司主持我的第一次財報電話會議。參加今天電話會議的有 Enphase 總裁兼首席執行官 Badri Kothandaraman； Eric Branderiz，首席財務官；和首席產品官 Raghu Belur。

After the market closed today, Enphase issued a press release announcing the results for its fourth quarter ended December 31, 2019. During this conference call, Enphase management will make forward-looking statements, including, but not limited to, statements related to Enphase Energy's expected financial performance, technology, new products, operations and sales and marketing.

今天收市後， Enphase 發布了一份新聞稿，宣布了截至2019年12月31日的第四季度業績。在本次電話會議期間，Enphase 管理層將做出前瞻性陳述，包括但不限於與 Enphase Energy 預期財務業績、技術、新產品、運營以及銷售和營銷相關的陳述。

These forward-looking statements involve significant risks and uncertainties, and Enphase Energy's actual results and the timing of events could differ materially from these expectations.

這些前瞻性陳述涉及重大風險和不確定性，Enphase Energy 的實際結果和事件發生的時間可能與這些預期存在重大差異。

For a more complete discussion of the risks and uncertainties, please see the company's annual report on Form 10-K for the year ended December 31, 2018, which is on file with the SEC, and the annual report on Form 10-K for the year ended December 31, 2019, which will be filed with the SEC in the first quarter of 2020. Enphase Energy cautions you not to place any undue reliance on forward-looking statements and undertakes no duty or obligation to update any forward-looking statements as a result of new information, future events or changes in its expectations.

有關風險和不確定性的更完整討論，請參閱公司提交給美國證券交易委員會的截至 2018 年 12 月 31 日止年度的 10-K 表格年度報告，以及公司的 10-K 表格年度報告。截至 2019 年 12 月 31 日的年度，將於 2020 年第一季度向美國證券交易委員會備案。Enphase Energy 提醒您不要過分依賴前瞻性陳述，並且不承擔因新信息、未來事件或預期變化而更新任何前瞻性陳述的責任或義務。

Also, please note that financial measures used on this call are expressed on a non-GAAP basis unless otherwise noted and have been adjusted to exclude certain charges. The company has provided a reconciliation of these non-GAAP financial measures to GAAP financial measures in its earnings release posted today, which can also be found in the Investor Relations section of its website.

此外，請注意，除非另有說明，否則本次電話會議中使用的財務指標是在非 GAAP 基礎上表示的，並且已經過調整以排除某些費用。該公司在今天發布的收益報告中提供了這些非 GAAP 財務指標與 GAAP 財務指標的對賬，也可以在其網站的投資者關係部分找到。

Now I'd like to introduce Badri Kothandaraman, President and Chief Executive Officer of Enphase Energy. Badri?

現在我想介紹一下 Enphase Energy 總裁兼首席執行官 Badri Kothandaraman。巴德里？

Good afternoon, and thanks for joining us today to discuss our fourth quarter 2019 financial results.

下午好，感謝今天加入我們討論我們 2019 年第四季度的財務業績。

We had a good quarter. We reported revenue of $210 million and shipped approximately 2.1 million microinverters. Demand was strong for our microinverter products in Q4. We are pleased with the pre orders for our Encharge battery, utilizing our Ensemble energy management technology and have started training installers to support the upcoming product launch.

我們有一個很好的季度。我們報告的收入為 2.1 億美元，出貨量約為 210 萬台微型逆變器。第四季度我們的微型逆變器產品需求強勁。我們對使用我們的 Ensemble 能源管理技術的 Encharge 電池的預購訂單感到滿意，並已開始培訓安裝人員以支持即將推出的產品。

We exited the fourth quarter at approximately 37%, 12%, 25%. This means 37% gross margin, 12% operating expenses and 25% operating income, all as a percentage of revenue on a non-GAAP basis.

我們以大約 37%、12%、25% 的速度退出了第四季度。這意味著 37% 的毛利率、12% 的營業費用和 25% 的營業收入，所有這些都是按非公認會計原則計算的收入百分比。

As a reminder, we introduced our new baseline financial model of 35%, 15%, 20%, at our Analyst Day in December. The baseline model represents the minimum financial performance we expect to achieve over the next 18 to 24 months, while demonstrating meaningful top line growth. Eric will go into greater detail about our finances later in the call.

提醒一下，我們在 12 月的分析師日推出了 35%、15%、20% 的新基準財務模型。基準模型代表了我們預計在未來 18 到 24 個月內實現的最低財務業績，同時展示了有意義的收入增長。埃里克將在稍後的電話會議中更詳細地介紹我們的財務狀況。

Let's now talk about ease of doing business, how customers perceive us. Our Q4 Net Promoter Score was 56% in North America compared to 54% in Q3. Our average call wait time is slightly over a minute, and we are working on several self-service initiatives to reduce call volumes. We recently opened our online Enphase Store with the objective of providing even better customer experience. Our target is to exit 2020 with an NPS score greater than 65%, a number that's considered very good in our industry.

現在讓我們談談做生意的便利性，客戶如何看待我們。我們在北美的第四季度淨推薦值是 56%，而第三季度是 54%。我們的平均呼叫等待時間略多於一分鐘，並且我們正在開展多項自助服務計劃以減少呼叫量。我們最近開設了在線 Enphase 商店，旨在提供更好的客戶體驗。我們的目標是在 2020 年結束時 NPS 得分超過 65%，這個數字在我們的行業中被認為是非常好的。

Let's talk about the impact of the coronavirus. Our thoughts and prayers are with the people of China as they fight the virus. Our priority is to ensure the wellbeing of our teams) as well as our partners in China. Our contract manufacturing facility -- partner facility in China is steadily ramping back up following the Chinese new year. The component supply chain is also ramping. We are seeing some indications that the outbound logistics from China is constrained.

讓我們談談冠狀病毒的影響。在抗擊病毒的過程中，我們的思念和祈禱與中國人民同在。我們的首要任務是確保我們的團隊以及我們在中國的合作夥伴的福祉。我們的合同製造工廠——中國的合作夥伴工廠在農曆新年過後穩步恢復生產。零部件供應鏈也在加速發展。我們看到一些跡象表明來自中國的出境物流受到限制。

Now coming to the first quarter. We are fully booked for the first quarter to the midpoint of guidance. In addition, with nearly 7 weeks into the quarter, our shipments have been 100% linear to our revenue guidance. While we remain cautious and are watching the impact of the virus carefully, we do not see a big impact to the first quarter revenue guidance at this point. Depending on the situation with the outbound logistics, we may have to expedite some product through air ships from China, and we are getting prepared for that. We have already factored that in our revenue as well as gross margin guidance to the extent we know.

現在來到第一季度。我們在第一季度的指導中點已經訂滿了。此外，在進入本季度將近 7 週的時間裡，我們的出貨量與我們的收入指引 100% 成線性關係。雖然我們保持謹慎並仔細觀察病毒的影響，但我們認為目前第一季度收入指引不會受到重大影響。根據出境物流的情況，我們可能需要從中國空運一些產品，我們正在為此做好準備。據我們所知，我們已經在我們的收入和毛利率指導中考慮了這一點。

Now is a good time to talk about how Mexico is doing. We are very happy that Mexico is running well, and provides us a good backup to service global demand in the event of supply disruptions elsewhere. We manufactured more than 0.5 million IQ 7 microinverters in Mexico during Q4. Our current run rate in Mexico is a little over 50,000 units a week. We previously stated, our target is to double the capacity to 1 million microinverters per quarter by Q4 of 2020, and we are making very good progress towards that goal.

現在是談論墨西哥表現如何的好時機。我們很高興墨西哥運行良好，並為我們提供了良好的支持，以在其他地方供應中斷的情況下滿足全球需求。我們在第四季度在墨西哥製造了超過 50 萬個 IQ 7 微型逆變器。我們目前在墨西哥的運行速度是每週 50,000 多台。我們之前說過，我們的目標是到 2020 年第四季度將容量翻一番，達到每季度 100 萬台微型逆變器，我們正在朝著這個目標取得非常好的進展。

I would like to acknowledge the hard work of numerous people, both on our team plus the Flex team, in order to make this happen.

我要感謝我們團隊和 Flex 團隊的無數人為實現這一目標所做的辛勤工作。

Next, let's talk about safe harbor. The revenue related to safe harbor shipments was $36.4 million in Q4, an increase from $8 million in Q3. For Q1, we plan to recognize the revenue of $44.5 million for ITC safe harbor shipments. I would like to highlight that only a very small number of our customers engage in safe harbor activity, and that each of these customers has an ongoing relationship with Enphase beyond safe harbor sales. These shipments are not merely onetime purchases, and growing share in their portfolio beyond safe harbor is an area of opportunity for Enphase.

接下來，讓我們談談安全港。第四季度與安全港運輸相關的收入為 3640 萬美元，高於第三季度的 800 萬美元。對於第一季度，我們計劃確認 ITC 安全港運輸的收入為 4450 萬美元。我想強調的是，我們只有極少數客戶從事安全港活動，而且這些客戶中的每一個都與 Enphase 保持著超越安全港銷售的持續關係。這些貨物不僅僅是一次性購買，而且在安全港以外的投資組合中越來越多的份額是 Enphase 的一個機會領域。

Let's talk a little bit more about Q1. We all know Q1 is a seasonally soft quarter for the solar industry, with double-digit percentage declines in revenue. And it is worthwhile for us to look at how we are doing, and our base business is doing with respect to the industry. For example, if we include safe harbor revenue from our midpoint of Q1 '20 guidance of $205 million, our base revenue only drops by 8%, which is a pretty good result considering the typical seasonality. Although we will provide formal guidance for the second quarter of 2020 in our April earnings call, I would like to provide some color today. There will, obviously, be no safe harbor sales in Q2. Our bookings for Q2 look pretty healthy right now, considering where we are. We expect a nice uptick in our base business for Q2 commensurate with the industry seasonality. We also expect Q2 to benefit from a full quarter of Encharge battery sales.

讓我們多談談 Q1。眾所周知，第一季度是太陽能行業的季節性疲軟季度，收入下降了兩位數百分比。我們值得看看我們的表現，以及我們的基礎業務在行業方面的表現。例如，如果我們將 20 年第一季度 2.05 億美元指導中點的安全港收入包括在內，我們的基本收入僅下降 8%，考慮到典型的季節性，這是一個相當不錯的結果。儘管我們將在 4 月份的財報電話會議上提供 2020 年第二季度的正式指導，但我今天想提供一些色彩。顯然，第二季度不會有安全港銷售。考慮到我們所處的位置，我們第二季度的預訂現在看起來非常健康。我們預計第二季度我們的基礎業務將出現與行業季節性相稱的良好增長。我們還預計第二季度將受益於整個季度的 Encharge 電池銷售。

As I said before, the pre orders for Encharge remain very healthy, and our installer training is already underway. Obviously, whatever we are saying with respect to Q2 is based on our current understanding of the coronavirus situation.

正如我之前所說，Encharge 的預購訂單仍然非常健康，我們的安裝人員培訓已經在進行中。顯然，我們對第二季度所說的一切都是基於我們目前對冠狀病毒情況的了解。

Let's move on to the regions. The U.S. and international mix for Q4 was 92% and 8%, respectively, excluding safe harbor revenue. The result is an obvious indication of strength of our North American business. Our U.S. mix, as a percentage, is probably going to remain high for a few more quarters with the introduction of Ensemble in North America. Nevertheless, we are putting a lot of effort to grow our international business. You heard some updates on the Analyst Day, and I'm going to expand a little bit more on that now.

讓我們繼續討論區域。第四季度的美國和國際組合分別為 92% 和 8%，不包括安全港收入。結果是我們北美業務實力的明顯體現。隨著 Ensemble 在北美的推出，我們在美國的混合比例可能會在接下來的幾個季度保持高位。儘管如此，我們仍在努力發展我們的國際業務。您在分析師日聽到了一些更新，現在我將對此進行更多擴展。

On Europe, we are making excellent progress. We are doing a few things that are different from before. We're pulling out all stops in order to bolster our sales force through both internal transfers and new hires. Some of those are already in place right now. We have made several offers and expect to have the increased headcount in place in Netherlands, Belgium, France, Germany and Spain by early March. While we are -- while the relationships with the distributors are very important to us, we are placing extraordinary emphasis on winning the long-tail installers by focusing on quality and customer experience. We are doing this by increasing our installer training significantly in Europe, and tracking installer visit metrics diligently. Our 2020 goal is to double the 2019 European sales, which was approximately $68 million.

在歐洲，我們正在取得很好的進展。我們正在做一些與以前不同的事情。我們正在竭盡全力通過內部調動和新員工來加強我們的銷售隊伍。其中一些現在已經到位。我們已經提出了幾項提議，並希望在 3 月初之前增加荷蘭、比利時、法國、德國和西班牙的員工人數。雖然我們 - 雖然與分銷商的關係對我們非常重要，但我們非常重視通過關注質量和客戶體驗來贏得長尾安裝商。為此，我們在歐洲大幅增加安裝人員培訓，並努力跟踪安裝人員訪問指標。我們 2020 年的目標是將 2019 年的歐洲銷售額翻一番，約為 6800 萬美元。

Aside from our focus on the long-tail installers, our key initiatives in the region, our social housing, ACM partnerships and providing differentiated solutions, such as integrated improved solar with CREATON, which we announced last week.

除了我們對長尾安裝商的關注之外，我們在該地區的主要舉措、我們的社會住房、ACM 合作夥伴關係以及提供差異化解決方案，例如我們上周宣布的與 CREATON 集成改進的太陽能。

Let's now talk about Asia Pacific and Latin America. Both Asia Pacific and Latin America are small-sized business in our similar-sized businesses and quite small. Our business in APAC is mainly in Australia. Just to remind you, we hired a general manager for that region in early 2019. We have the right team in place, along with the focus and the right metrics there. We are seeing very encouraging sell-through to the installers. In addition, you recently saw a press release where we partnered with the installers to support the Australian PV industry to introduce rapid shutdown as a requirement. On top of this, Enphase's AC architecture means there is no high-voltage DC on the roof, thereby providing increased fire safety. With these initiatives, we expect this region to grow nicely in 2020.

現在讓我們談談亞太地區和拉丁美洲。亞太地區和拉丁美洲在我們類似規模的業務中都是小型業務，而且規模很小。我們在亞太地區的業務主要在澳大利亞。提醒一下，我們在 2019 年初為該地區聘請了一名總經理。我們擁有合適的團隊，以及那裡的重點和正確的指標。我們看到對安裝人員的銷售非常令人鼓舞。此外，您最近看到了一份新聞稿，其中我們與安裝商合作，支持澳大利亞光伏行業將快速關閉作為一項要求。最重要的是，Enphase 的交流架構意味著屋頂上沒有高壓直流電，從而提高了消防安全性。通過這些舉措，我們預計該地區將在 2020 年實現良好增長。

We will discuss products next. We had volume shipments of IQ 7A, our highest power product, a 349 watt AC, for SunPower as well as other customers in the fourth quarter. IQ 7A, like what I said, is our highest power microinverter for the residential space and pairs very well with the high-efficiency modules up to 450-watt DC in both 60- and 72-cell configuration. We're going to talk about AC module partners next.

接下來我們將討論產品。我們在第四季度為 SunPower 和其他客戶批量發貨了 IQ 7A，這是我們功率最高的產品，349 瓦交流電。正如我所說，IQ 7A 是我們用於住宅空間的功率最高的微型逆變器，並且在 60 和 72 電池配置中與高達 450 瓦直流電的高效模塊完美搭配。接下來我們要談談交流模塊合作夥伴。

We continue to make steady progress with our AC module partners, including SunPower, Panasonic, Solaria, to mention a few. We are working to bring in a few more module partners, both in the U.S. as well as in Europe. Enphase energized ACMs from our module partners have now been adopted by more than 740 installers in the U.S. as of this date. By the way, some of these ACMs are also available for both installers and homeowners to purchase directly from the Enphase online store.

我們繼續與我們的交流模塊合作夥伴取得穩步進展，包括 SunPower、松下、Solaria 等。我們正在努力在美國和歐洲引入更多的模塊合作夥伴。截至目前，來自我們模塊合作夥伴的 Enphase 通電 ACM 現已被美國超過 740 名安裝人員採用。順便說一句，其中一些 ACM 也可供安裝人員和房主直接從 Enphase 在線商店購買。

Next topic is our Encharge battery that uses Ensemble energy management technology. The shipment for the Encharge battery are expected to begin in March of 2020. We have already started training installers. We are expecting to ramp trainings a lot over the next few months. The feedback has been really positive with very high NPS scores. The installers clearly see Encharge as a safe, reliable and powerful option for the homeowners. However, they feel the biggest value for the homeowner is that, for the first time ever, they can easily generate energy, store energy and control energy in a single system, all completely designed by Enphase. That is the power of Ensemble. In the coming months, we will be expanding the training program beyond our Fremont headquarters to include many of our partner sites in order to increase our training throughput significantly.

下一個主題是我們使用 Ensemble 能源管理技術的 Encharge 電池。Encharge 電池預計將於 2020 年 3 月開始發貨。我們已經開始培訓安裝人員。我們預計在接下來的幾個月中會大量增加培訓。反饋非常積極，NPS 得分非常高。安裝人員清楚地將 Encharge 視為房主的安全、可靠和強大的選擇。然而，他們認為對房主來說最大的價值在於，有史以來第一次，他們可以在一個系統中輕鬆地產生能量、儲存能量和控制能量，所有這些都完全由 Enphase 設計。這就是 Ensemble 的力量。在接下來的幾個月裡，我們將把培訓計劃擴展到我們弗里蒙特總部以外的地方，以包括我們的許多合作夥伴站點，以顯著提高我們的培訓吞吐量。

In summary, we are very happy with our performance in 2019 across all fronts. We talked about our 3 pillars of differentiation at the Analyst Day: semiconductors, software and Ensemble. This, combined with operational excellence and our scalable business model, is helping us win new customers. As we highlighted in the Analyst Day, our immediate growth driver is the Encharge battery followed by the IQ 8 solar microinverters on the roof, then by IQ 8D for the small commercial space. And finally, Ensemble-in-a-Box for the India off-grid markets. With that, I will turn the call over to Eric for his review of our financial results. Eric?

總之，我們對 2019 年各方面的表現感到非常滿意。我們在分析師日討論了我們差異化的三大支柱：半導體、軟件和集成。這與卓越的運營和我們可擴展的商業模式相結合，正在幫助我們贏得新客戶。正如我們在分析師日強調的那樣，我們的直接增長動力是 Encharge 電池，其次是屋頂上的 IQ 8 太陽能微型逆變器，然後是用於小型商業空間的 IQ 8D。最後，針對印度離網市場的集成盒。有了這個，我將把電話轉給埃里克，讓他審查我們的財務業績。埃里克？

Thanks, Badri. I will provide more details related to our fourth quarter of 2019 financial results as well as our business outlook for the first quarter of 2020. We have provided a reconciliation of non-GAAP to GAAP financial measures in our earnings release posted today, which can also be found in the Investor Relations section of our website.

謝謝，巴德里。我將提供與我們 2019 年第四季度財務業績以及 2020 年第一季度業務展望相關的更多詳細信息。我們在今天發布的收益報告中提供了非 GAAP 與 GAAP 財務指標的對賬，也可以在我們網站的投資者關係部分找到。

Total revenue for the fourth quarter of 2019 was $210 million, including approximately $36.4 million of safe harbor revenue. Total revenue for the fourth quarter of 2019 increased 17% sequentially and increased 128% year-over-year. We shipped approximately 677 megawatts DC in the fourth quarter of 2019, an increase in megawatts this year of 16% sequentially. The megawatts shipped represented approximately 2.1 million microinverters.

2019 年第四季度的總收入為 2.1 億美元，其中包括約 3640 萬美元的安全港收入。2019 年第四季度總收入環比增長 17%，同比增長 128%。我們在 2019 年第四季度出貨了大約 677 兆瓦的直流電，比今年的兆瓦增加了 16%。出貨的兆瓦代表大約 210 萬個微型逆變器。

Non-GAAP gross margin for the fourth quarter of 2019 was 37.3% compared to 36.2% for the third quarter of 2019. Expedite fees are now normalized within our expected range, and therefore, did not have an abnormal impact in gross margin. Our component supply is stable and, as a result, we will no longer quantify this expense if it is within the normal course of business.

2019 年第四季度的非美國通用會計準則毛利率為 37.3%，而 2019 年第三季度為 36.2%。加急費用現在在我們的預期範圍內正常化，因此，對毛利率沒有產生異常影響。我們的組件供應穩定，因此，如果在正常業務過程中，我們將不再量化這筆費用。

Non-GAAP operating expenses were $26.1 million for the fourth quarter of 2019 compared to $25 million for the third quarter of 2019. GAAP operating expenses were $33.4 million for the fourth quarter of 2019 compared to $31 million for the third quarter of 2019. GAAP operating expenses for the fourth quarter of 2019 included $5.6 million of stock-based compensation expenses, $545,000 of amortization expenses for acquired intangible assets, and $1.1 million of restructuring expenses. Our restructuring program was completed at the end of 2019, and at this time, we do not anticipate any further or future expenses related to restructuring.

2019 年第四季度的非美國通用會計準則運營費用為 2610 萬美元，而 2019 年第三季度為 2500 萬美元。2019 年第四季度的 GAAP 運營費用為 3340 萬美元，而 2019 年第三季度為 3100 萬美元。2019 年第四季度的 GAAP 運營費用包括 560 萬美元的股票薪酬費用、545,000 美元的收購無形資產攤銷費用和 110 萬美元的重組費用。我們的重組計劃已於 2019 年底完成，目前，我們預計不會有任何與重組相關的進一步或未來費用。

On a non-GAAP basis, income from operations was $52.3 million for the fourth quarter of 2019 compared to $40.2 million for the third quarter of 2019. On a GAAP basis, income from operations was $44.4 million for the fourth quarter of 2019. This increase in operating income is reflective of the strong demand of our products, and our focus on cost reduction and expense management.

按非美國通用會計準則計算，2019 年第四季度運營收入為 5230 萬美元，而 2019 年第三季度為 4020 萬美元。根據 GAAP，2019 年第四季度的運營收入為 4440 萬美元。營業收入的增長反映了我們產品的強勁需求，以及我們對降低成本和費用管理的重視。

On a non-GAAP basis, net income for the fourth quarter of 2019 was $52 million compared to $39.5 million for the third quarter of 2019. This resulted in diluted earnings per share of $0.39 for the fourth quarter of 2019 compared to $0.30 for the third quarter of 2019.

按非美國通用會計準則計算，2019 年第四季度淨收入為 5200 萬美元，而 2019 年第三季度為 3950 萬美元。這導致 2019 年第四季度的攤薄後每股收益為 0.39 美元，而 2019 年第三季度為 0.30 美元。

GAAP net income for the fourth quarter of 2019 was $116.7 million compared to $31.1 million for the third quarter of 2019. This resulted in diluted earnings per share of $0.88 for the fourth quarter of 2019 compared to $0.23 for the third quarter of 2019.

2019 年第四季度的 GAAP 淨收入為 1.167 億美元，而 2019 年第三季度為 3110 萬美元。這導致 2019 年第四季度的攤薄後每股收益為 0.88 美元，而 2019 年第三季度為 0.23 美元。

GAAP earnings per share for the fourth quarter of 2019 includes a $0.54 noncash benefit from the release of our valuation allowance against deferred tax assets that we highlighted on the Q3 2019 earnings call. I will address taxes shortly.

2019 年第四季度的 GAAP 每股收益包括 0.54 美元的非現金收益，該收益來自我們在 2019 年第三季度財報電話會議上強調的遞延稅項資產估值備抵的釋放。我將很快解決稅收問題。

The strong financial results for the fourth quarter of 2019 represent the fifth consecutive quarter of cash generation and GAAP profitability. I will also like to highlight the significant milestone of achieving the first full year of GAAP profitability in the company's history.

2019 年第四季度強勁的財務業績代表了連續第五個季度產生現金和 GAAP 盈利能力。我還要強調公司歷史上第一個實現 GAAP 全年盈利的重要里程碑。

Now turning to the balance sheet. Inventory was $32.1 million at the end of Q4 2019 compared to $30.2 million at the end of Q3 2019.

現在轉向資產負債表。2019 年第四季度末庫存為 3210 萬美元，而 2019 年第三季度末為 3020 萬美元。

We exited the fourth quarter of 2019 with a total cash balance of $296.1 million, including restricted cash, compared to $203 million for the third quarter of 2019, and and $106.2 million for the fourth quarter of 2018. The restricted cash balance relate to first quarter 2020 safe harbor deliveries. We expect the restriction to be lifted at the end of April 2020 and for all cash to be unrestricted by then.

我們在 2019 年第四季度結束時的現金餘額總額為 2.961 億美元，包括受限現金，而 2019 年第三季度為 2.03 億美元，2018 年第四季度為 1.062 億美元。受限現金餘額與 2020 年第一季度安全港交付有關。我們預計該限制將在 2020 年 4 月底取消，屆時所有現金都將不受限制。

The cash balance benefited from prepayments of $49.9 million for safe harbor deliveries in Q1 2020, of which $5.4 million relate to products with deferred revenue component such as Envoy and Enlighten. Revenue from these products is deferred and recognized as revenue over the respective useful life. As a result, our safe harbor revenue guidance of $44.5 million for the first quarter of 2020, differs from the prepayments we have received.

現金餘額受益於 2020 年第一季度 4990 萬美元的安全港交付預付款，其中 540 萬美元與 Envoy 和 Enlighten 等具有遞延收入成分的產品有關。這些產品的收入遞延並在各自的使用壽命內確認為收入。因此，我們 2020 年第一季度 4450 萬美元的安全港收入指引與我們收到的預付款不同。

We generated $102.3 million in cash flow from operations and $94.9 million in adjusted free cash flow for the fourth quarter of 2019. For calendar year 2019, we generated $124.3 million of adjusted free cash flow.

2019 年第四季度，我們產生了 1.023 億美元的運營現金流和 9490 萬美元的調整後自由現金流。在 2019 日曆年，我們產生了 1.243 億美元的調整後自由現金流。

Capital expenditures were $7.4 million for Q4 2019, mainly to ramp up our microinverter supply capacity in Mexico and Encharge battery capacity in China.

2019 年第四季度的資本支出為 740 萬美元，主要用於提高我們在墨西哥的微型逆變器供應能力和在中國的 Encharge 電池產能。

Now let's discuss our outlook for the first quarter of 2020. We expect our revenue for the first quarter of 2020 to be within a range of $200 million to $210 million, including $44.5 million of revenue for ITC safe harbor shipments. Turning to margins, we expect GAAP and non-GAAP gross margin to be within a range of 36% to 39%. We expect our GAAP operating expenses to be within a range of $35 million million to $37 million, including a total of approximately $7 million estimated for stock-based compensation expenses and acquisition-related amortization. We expect non-GAAP operating expenses to be within a range of $28 million to $30 million. The sequential increase is primarily related to greater spending on R&D to support new products as well as increasing sales headcount in Europe. In general, our operating expenses are expected to be in line or lower than our baseline financial model of 15% of revenue.

現在讓我們討論一下我們對 2020 年第一季度的展望。我們預計 2020 年第一季度的收入將在 2 億美元至 2.1 億美元之間，其中包括 4450 萬美元的 ITC 安全港出貨收入。談到利潤率，我們預計 GAAP 和非 GAAP 毛利率將在 36% 至 39% 的範圍內。我們預計我們的 GAAP 運營費用將在 3500 萬美元至 3700 萬美元之間，包括基於股票的薪酬費用和與收購相關的攤銷估計的總計約 700 萬美元。我們預計非 GAAP 運營費用將在 2800 萬至 3000 萬美元之間。連續增長主要與增加研發支出以支持新產品以及增加歐洲銷售人員有關。總的來說，我們的運營費用預計將符合或低於我們佔收入 15% 的基準財務模型。

Before wrapping up, let me address taxes. During the fourth quarter, we released our valuation allowance against deferred tax asset based on our recent history of profitability that is forecast to persist. This will result in a GAAP tax benefit. We will now be subject to a 26% to 28% GAAP tax rate in 2020, inclusive of federal, state and international taxes. Cash taxes are expected to deviate materially from GAAP taxes as we have federal net operating loss carryforwards of $147.4 million, federal reserve credits of $12.4 million, state net operating loss carryforwards of $97.6 million and state research credits of $11.3 million. Until we fully utilize these NOLs and research credit, most of the cash taxes will only relate to income from international operations, which represents the minority of our business.

在結束之前，讓我談談稅收。在第四季度，我們根據預計將持續的近期盈利歷史釋放了遞延稅資產的估值備抵。這將導致 GAAP 稅收優惠。我們現在將在 2020 年繳納 26% 至 28% 的 GAAP 稅率，包括聯邦、州和國際稅收。由於我們有 1.474 億美元的聯邦淨營業虧損結轉、1240 萬美元的聯邦儲備信貸、9760 萬美元的州淨營業虧損結轉和 1130 萬美元的州研究信貸，現金稅預計將與 GAAP 稅有重大偏差。在我們充分利用這些 NOL 和研究信貸之前，大部分現金稅將僅與國際業務收入有關，這占我們業務的一小部分。

With that, I will now open the line for questions.

有了這個，我現在將打開問題熱線。

(Operator Instructions) Our first question comes from Brian Lee with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Brian Lee。

Congrats on the strong quarter. I guess, maybe first question on the Q1 guidance, the safe harbor revenue, appreciate all the granularity you're providing around the dollar figures. Can you also give us a sense of what the customer mix looks like? I know, in Q4, you had specifically called out the one customer, Sunrun. Is it the same customer in Q1? Is it a totally different customer in Q1? And if it's a different customer, are there multiple customers? That would be the first question I have.

祝賀強勁的季度。我想，也許是關於第一季度指導的第一個問題，即安全港收入，欣賞你圍繞美元數據提供的所有粒度。您能否也讓我們了解一下客戶組合的情況？我知道，在第四季度，您專門召集了一位客戶 Sunrun。Q1 是同一個客戶嗎？Q1 是完全不同的客戶嗎？如果是不同的客戶，是否有多個客戶？那將是我的第一個問題。

It is a different customer. In fact, there are multiple customers, yes, for the safe harbor amount of $44.5 million.

這是一個不同的客戶。事實上，有多個客戶，是的，安全港金額為 4450 萬美元。

Okay. And Bardir, it's safe to assume that all Tier 1 installers, as you mentioned during your prepared remarks, there's only a handful of companies that can do the safe harbor.

好的。Bardir，可以安全地假設，正如您在準備好的發言中提到的，所有 1 級安裝商，只有少數公司可以做到安全港。

Yes.

是的。

Okay. Fair enough. That's helpful. And then I guess, if I -- I don't want you to -- I don't want to corner you into giving more guidance than you're willing to provide, but you did try to provide us a little bit of sense around Q2. So when I look back at Q2 revenue trends, historically, there's been about an average of 30%, give or take, sequential revenue growth and also a similar range for volumes, if I look back through the model, dating all the way back to the 2010s. I know a lot has changed over the period. But is that the type of seasonality we should expect in Q2 this year as well, based on your comments around healthy bookings and seasonality on core revenues, again, assuming no safe harbor and then no incremental coronavirus impact being the base cases. Just wondering if that's sort of the read we should be taking away from your comments?

好的。很公平。這很有幫助。然後我想，如果我——我不想讓你——我不想強迫你提供比你願意提供的更多的指導，但你確實試圖為我們提供一點意義Q2左右。因此，當我回顧第二季度的收入趨勢時，從歷史上看，連續收入增長平均約為 30%，銷量也有類似的範圍，如果我回顧整個模型，可以追溯到2010年代。我知道這段時間發生了很多變化。但是，根據您對健康預訂和核心收入季節性的評論，我們也應該在今年第二季度預期這種季節性，再次假設沒有安全港，然後沒有增量冠狀病毒影響是基本情況。只是想知道這是否是我們應該從您的評論中刪除的內容？

Yes. I mean, that's a good question. As you correctly said, Q2 is quite seasonally strong. Whether the number is 20% or 30%, it's hard for us to say at this point in time. But in general, we expect to outperform the industry seasonality.

是的。我的意思是，這是個好問題。正如您所說的那樣，第二季度的季節性很強。這個數字是 20% 還是 30%，我們現在很難說。但總的來說，我們預計會跑贏行業季節性。

All right. And then maybe last one, if I could squeeze it in, just around the Encharge. It's encouraging to hear you guys are on schedule for the shipments in Q1. One of your peers who also has a new product in the market, just last week, Generac announced that they're raising their target for shipments by 50% versus their original view. Any thoughts around kind of the market makeup as you're seeing early traction on preorders and also shift to March and just in the context of your 5% attach rate. Is there potentially some upside as you move through the year, given how the market is developing?

好的。然後也許是最後一個，如果我能把它擠進去，就在 Encharge 附近。很高興聽到你們按計劃在第一季度發貨。您的一位同行也在市場上推出了新產品，就在上週，Generac 宣布他們將出貨目標提高了 50%，與最初的預期相比。任何關於市場構成的想法，因為你看到預購的早期牽引力，也轉移到 3 月，並且只是在你 5% 的附加率的背景下。考慮到市場的發展情況，今年是否有潛在的上漲空間？

Yes. I mean, look, we are extremely excited by our product. In fact, Encharge is running well at all 3 of our houses: my house, Eric's house, Raghu's house, we are all running. In fact, I went off-grid this morning for about 8 hours. So we are really happy with the performance of Encharge so far. And of course, it's time for us to bring to the market. Our -- if you really step back and think about it, why installers like our solution a lot. And this is what the installers told us. It's really -- it's the all-in-one solar and storage system, seamless experience for the homeowner, one number to call, very high quality, very high customer experience, safe AC architecture, all controlled by Ensemble energy management technology. That's our value proposition. And we're sticking to our value proposition. There is obviously a lot of competition, a lot of noise in the market, but I think our value proposition is quite difficult to compete against. So we will -- many people are coming. We will see them in the marketplace. That's all I can say right now.

是的。我的意思是，看，我們對我們的產品感到非常興奮。事實上，Encharge 在我們所有的 3 個房子裡都運行良好：我的房子、Eric 的房子、Raghu 的房子，我們都在運行。事實上，我今天早上斷網了大約 8 個小時。所以我們對 Encharge 到目前為止的表現非常滿意。當然，現在是我們推向市場的時候了。我們的——如果你真的退一步想想，為什麼安裝人員非常喜歡我們的解決方案。這就是安裝人員告訴我們的。這真的是——它是一體化的太陽能和儲能係統，房主的無縫體驗，一個電話號碼，非常高的質量，非常高的客戶體驗，安全的交流架構，全部由 Ensemble 能源管理技術控制。這就是我們的價值主張。我們堅持我們的價值主張。顯然市場上有很多競爭，很多噪音，但我認為我們的價值主張很難與之競爭。所以我們會——很多人會來。我們將在市場上看到它們。這就是我現在能說的。

Our next question comes from Mark Strouse.

我們的下一個問題來自 Mark Strouse。

Badri, I just wanted to go back to the comment that you made about the impact from coronavirus and what's included and what's not. I believe you said it's possible there could be some expedited shipping fees. Is that included or excluded from the 36% to 39% guidance that you've given?

Badri，我只想回到你對冠狀病毒的影響以及包括什麼和不包括什麼的評論。我相信您說過可能會收取一些加急運費。您給出的 36% 到 39% 的指導中是否包含或排除了這一點？

We have already included that in the guidance we gave you.

我們已經將其包含在我們給您的指南中。

Okay. And then you've been talking about expedited shipping fees for several quarters now. Excluding the wildcard from coronavirus, can you just give an update there? Are you tracking expectations having your capacity be above expected demand?

好的。然後你現在幾個季度一直在談論加急運費。從冠狀病毒中排除通配符，你能在那裡提供更新嗎？您是否在追踪產能高於預期需求的預期？

Yes. I mean, look, we used to have expedite charges of more than 200 basis points before. That situation has changed. We are now normalized with respect to expedite. It's really in the noise. Of course, due to coronavirus, we have planned a little bit more than usual, but that's already factored in the guidance. And going forward, if the situation normalizes with respect to coronavirus, we will -- expedite is going to become noise. It's not going to be significant for us.

是的。我的意思是，你看，我們以前有超過 200 個基點的加急費用。這種情況已經改變。我們現在在加速方面已經標準化。真是喧鬧中。當然，由于冠狀病毒，我們的計劃比平時多了一點，但這已經在指南中考慮到了。展望未來，如果冠狀病毒的情況正常化，我們將 - 加速將成為噪音。這對我們來說並不重要。

Okay. And then just one quick follow-up for Eric. Starting next quarter, with the Encharge starting to ship in March, how should we think about the -- any metrics that you're going to give around those shipments or those revenue beginning in 1Q?

好的。然後是埃里克的快速跟進。從下個季度開始，隨著 Encharge 於 3 月開始發貨，我們應該如何考慮 - 您將在第一季度開始提供的關於這些出貨量或收入的任何指標？

Yes. So we are considering the possibility that starting in Q3, we may start providing breakout on revenue. We haven't made the final decision yet. There are external reporting considerations. But we understand that when this becomes meaningful or part of our ramp, it will create a little bit of a problem for you folks to be able to model it. So we are very sensitive to that, and we will address it when we have more visibility into how that will work out for external reporting.

是的。所以我們正在考慮從第三季度開始的可能性，我們可能會開始提供收入突破。我們還沒有做出最終決定。有外部報告方面的考慮。但我們知道，當這變得有意義或成為我們的斜坡的一部分時，它會給你們建模帶來一些問題。所以我們對此非常敏感，當我們對外部報告的效果有更多了解時，我們將解決它。

Our next question comes from Maheep Mandloi from Crédit Suisse.

我們的下一個問題來自 Crédit Suisse 的 Maheep Mandloi。

Congratulations on the strong quarter. Maybe just on the other product launches you just mentioned on the Analyst Day, the IQ 8 and IQ 8D. Could you probably just talk about how you're thinking about the rollout of those products, specifically given the supply chain disturbances in China, if any?

祝賀強勁的季度。也許就在你剛剛在分析師日提到的其他產品發布上，IQ 8 和 IQ 8D。您能否談談您是如何考慮這些產品的推出的，特別是考慮到中國供應鏈的干擾（如果有的話）？

Yes. I mean, for those, basically, we are thinking about the second half of the year. The rough order would be the IQ 8 microinverters on the roof would be the first, followed by the commercial microinverters, followed by the Ensemble in a box.

是的。我的意思是，對於那些，基本上，我們正在考慮下半年。粗略的順序是屋頂上的 IQ 8 微型逆變器是第一個，然後是商用微型逆變器，然後是盒子中的 Ensemble。

Got it. And just probably going back to the Encharge. Could you just talk about, like, how much do you -- should we expect from Encharge in Q1 specifically? Or is it mostly a Q2 number?

知道了。並且可能會回到 Encharge。你能談談，比如，你對第一季度的 Encharge 有多少期望？還是主要是Q2號碼？

We'll have small shipments of Encharge in Q2, I mean, in Q1, but nothing significant in terms of revenue. Q2 will have one full quarter of Encharge. Yes, and we expect that to be nice.

我們將在第二季度有少量 Encharge 出貨量，我的意思是，在第一季度，但在收入方面並不重要。Q2 將有整整四分之一的 Encharge。是的，我們希望那會很好。

Got it. And just lastly, on taxes. Eric, I just wanted to make sure we understood that correctly. So from a tax perspective, it's minimal cash taxes and like a standard GAAP tax rate in line with the U.S. corporate tax rates. Is that a fair statement?

知道了。最後，關於稅收。埃里克，我只是想確保我們理解正確。因此，從稅收的角度來看，這是最低的現金稅，並且類似於符合美國公司稅率的標準 GAAP 稅率。這是一個公平的說法嗎？

Yes, you got it. So think about $59 million of cash savings for the monetization of the NOL and tax credits, right? That's from a cash. And from P&L, we give you all the data to be able to model on a non-GAAP basis. When those are exhausted, we flip, GAAP and non-GAAP will be the same.

是的，你明白了。那麼想想 5900 萬美元的現金儲蓄用於 NOL 和稅收抵免的貨幣化，對嗎？那是來自現金。從 P&L 中，我們為您提供所有數據，以便能夠在非 GAAP 基礎上進行建模。當這些用盡時，我們翻轉，GAAP 和非 GAAP 將相同。

Our next question comes from Colin Rusch with Oppenheimer.

我們的下一個問題來自 Colin Rusch 和 Oppenheimer。

Can you guys talk a little bit about the growth in Europe, how effective you've been in being able to build out the sales team? And how much of the 1Q guide is expected to come out of non-North American sales?

你們能談談歐洲的增長嗎？你們在建立銷售團隊方面的效率如何？預計 1Q 指南中有多少來自非北美銷售？

Yes. I mean, we don't really break out the exact numbers for Europe. But I did give you some color this time on the total revenue for 2019 was $68 million. Our plan is to double it in 2020 to go to $136 million. And like what I told you, we have not been happy with our progress in Europe, but that has changed. Now we are actually doing very well. We have hired already a bunch of sales guys in place. We have internal transfers from the U.S. already in place, they've already started. And so I would say, in terms of headcount, approximately 5 salespeople was the number we had in 2019, and that number will triple as we get towards March and April. So we are tripling our sales headcount in Europe. We are focusing on the right regions. Our sales guy in Germany already started. He is driving the collaboration with CREATON. We've already hired the guys for Spain. And we are doubling down on Netherlands, our most important area. We're also going to double down on France, where we have a very high market share already. Yes. I mean, it's a good story right now. We are very confident that we're going to make progress. We are very confident of start seeing an uptick in revenue as early as Q1.

是的。我的意思是，我們並沒有真正列出歐洲的確切數字。但這次我確實給了你一些顏色，2019 年的總收入是 6800 萬美元。我們的計劃是在 2020 年將其翻一番，達到 1.36 億美元。就像我告訴過你的那樣，我們對我們在歐洲取得的進展並不滿意，但情況已經改變。現在我們實際上做得很好。我們已經聘請了一批銷售人員到位。我們已經從美國進行了內部轉移，他們已經開始了。所以我想說，就員工人數而言，我們在 2019 年擁有大約 5 名銷售人員，而且隨著我們進入 3 月和 4 月，這個數字將增加兩倍。因此，我們將歐洲的銷售人數增加了兩倍。我們專注於正確的區域。我們在德國的銷售人員已經開始了。他正在推動與 CREATON 的合作。我們已經為西班牙僱傭了這些人。我們正在加倍投資荷蘭，這是我們最重要的地區。我們還將在法國加倍下注，我們在那裡已經擁有非常高的市場份額。是的。我的意思是，現在這是個好故事。我們非常有信心我們會取得進展。我們非常有信心最早在第一季度就開始看到收入增長。

Great. And then as you think about the battery supply chain and your cost structure there, how should we think about the cadence of cost reduction? I'm assuming that you're going to go through a series of costs, that's if you get to higher volumes. But just trying to get a sense of what the order of magnitude is on that? And how quickly we might get to some of those cost breaks?

偉大的。然後當你考慮電池供應鍊和那裡的成本結構時，我們應該如何考慮降低成本的節奏？我假設您將經歷一系列成本，那就是如果您獲得更高的產量。但只是想了解一下它的數量級是多少？我們可以多快實現其中一些成本的降低？

Yes. Like what I told you guys in the Analyst Day, cost reduction is embedded in our DNA. That's what I call is operational excellence. We look at all kinds of costs. If I look at microinverter costs, I look at the transformer cost, defect cost, the connector costs, for example, the connector, yes, I can talk about that for hours. So we have a DC connector in our microinverter. Today, we have an adapter cable that converts the connection from the panel into a proprietary connector on the microinverter. We are going to eliminate that adapter cable by building the, what is called as an nc4 light connector on the microinverter. That alone will save us roughly $2 to $3. So -- but that's going to take some time. It's going to take some time. It's going to be done over multiple quarters. That's just an example of one. We're focusing on transformers, we are focusing on the -- always on sourcing the right AC sets. We're always working on combinations where we can integrate more components into our ASIC. So that's on the microinverter.

是的。就像我在分析師日告訴你們的那樣，降低成本是我們的 DNA。這就是我所說的卓越運營。我們會考慮各種成本。如果我查看微型逆變器成本，我會查看變壓器成本、缺陷成本、連接器成本，例如連接器，是的，我可以談論幾個小時。所以我們的微型逆變器中有一個直流連接器。今天，我們有一根適配器電纜，可以將面板上的連接轉換為微型逆變器上的專有連接器。我們將通過在微型逆變器上構建所謂的 nc4 燈連接器來消除適配器電纜。僅此一項就可以為我們節省大約 2 到 3 美元。所以 - 但這需要一些時間。這需要一些時間。這將在多個季度完成。這只是其中的一個例子。我們專注於變壓器，我們專注於——始終採購合適的交流電設備。我們一直在研究可以將更多組件集成到我們的 ASIC 中的組合。這就是微型逆變器。

On the accessories, gateway is an entire exercise. Our Envoy is -- we're spending a lot of hours trying to take cost out of the Envoy, the same effort on the cable, and we'll apply the same diligence to Encharge going forward. So that's where you see our gross margins kind of sequentially going up. If you see the Q4 number, our Q3 number was 36%, Q4 '19, we did around 37%. We are guiding 36% to 39% for Q1. So we are getting more and more -- executing well on the cost reduction.

在附件上，網關是一個完整的練習。我們的 Envoy 是——我們花了很多時間試圖降低 Envoy 的成本，在電纜上付出同樣的努力，我們將在未來對 Encharge 進行同樣的努力。所以這就是你看到我們的毛利率連續上升的地方。如果你看到第四季度的數字，我們第三季度的數字是 36%，19 年第四季度，我們做了大約 37%。我們將第一季度指導為 36% 至 39%。所以我們越來越多——在降低成本方面執行得很好。

Our next question comes from Jeff Osborne with Cowen & Company.

我們的下一個問題來自 Cowen & Company 的 Jeff Osborne。

Just a couple of questions on my end. I was wondering if -- I know I've asked you this in the past, Badri, but if you just confirm that with Encharge, the the launch of that, the margin profile would be consistent with the corporate average? Or how do we -- I think Colin was trying to ask about that as well. Is the initial phases of the launch pressuring margins in Q2 and Q3? And then as you take cost out, we'll come back to the targeted range?

我這邊只有幾個問題。我想知道是否 - 我知道我過去問過你這個問題，Badri，但如果你只是確認 Encharge 的推出，利潤率將與公司平均水平一致？或者我們如何——我想 Colin 也想問這個問題。Q2 和 Q3 的初始發布階段是否對利潤率造成壓力？然後當你扣除成本時，我們會回到目標範圍嗎？

No, it's not going to compress our margins. It's going to be right in line with our model.

不，它不會壓縮我們的利潤。它將與我們的模型保持一致。

Great. That's great to hear. And then can you just talk about IQ 8's introduction for solar only deployments? Is that still targeted for Q2, Q3? So I know it's in the Encharge solution, but how do we think about it, if somebody doesn't want storage, when will that be available?

偉大的。聽到這個消息我很高興。然後你能談談 IQ 8 對純太陽能部署的介紹嗎？這仍然是針對 Q2、Q3 的嗎？所以我知道它在 Encharge 解決方案中，但我們如何考慮它，如果有人不想要存儲，那什麼時候可用？

Right. So as I said, it's in the second half of 2020. And yes, it's almost ready. And basically, you rightly pointed out, it's already available inside the Encharge, but of course, we have to do a lot more work with a lot of flavors in IQ 8, which is IQ 8, IQ 8+, the IQ 8X, the IQ 8A, and then the real effort is to make sure that the gateway talks the same language as IQ 8. And ensuring that we do all the due diligence on quality on the various flavors. So we might do it earlier if things go better. But for now, I'm just -- I'm not giving a quarter, but I'm saying generically, second half of 2020.

正確的。正如我所說，現在是 2020 年下半年。是的，它幾乎準備好了。基本上，你正確地指出，它已經在 Encharge 中可用，但當然，我們必須在 IQ 8 中做更多的工作，包括 IQ 8、IQ 8+、IQ 8X、 IQ 8A，然後真正的努力是確保網關使用與 IQ 8 相同的語言。並確保我們對各種口味的質量進行所有盡職調查。因此，如果情況好轉，我們可能會更早地這樣做。但就目前而言，我只是 - 我沒有給出四分之一，但我一般說的是 2020 年下半年。

Got it. And the last one I had, either for yourself, Badri or Eric. Just how do we think about the second half as your Mexico capacity ramps up to the $1 million a quarter target and what the implications are for pricing as you sort of reverse the higher prices that you had experienced in 2019 because of the tariff. Fully recognizing it doesn't impact the gross margins, but just -- it would be important for modeling as we think about ASPs per watt?

知道了。最後一個是我給你自己，巴德里或埃里克的。我們如何看待下半年，因為您的墨西哥產能增加到每季度 100 萬美元的目標，以及當您扭轉 2019 年因關稅而經歷的更高價格時，對定價有何影響。充分認識到它不會影響毛利率，但只是 - 當我們考慮每瓦特的 ASP 時，它對於建模很重要？

Like what I said, our -- if you think about gross margin, gross margin is a combination of pricing and cost. We are continuously improving our cost. In terms of pricing, right now, the pricing environment is very stable. And -- but of course, we always model 1% to 2% price reductions every quarter. That's what we do.

就像我說的，我們的——如果你考慮毛利率，毛利率是定價和成本的結合。我們正在不斷改善我們的成本。在定價方面，目前，定價環境非常穩定。而且 - 但當然，我們總是模擬每個季度降價 1% 到 2%。這就是我們所做的。

Our next question comes from Philip Shen with Roth Capital Partners.

我們的下一個問題來自 Roth Capital Partners 的 Philip Shen。

First one is on the coronavirus situation. I was just wondering if you could give us a little more color on what's happening on the ground there in your facility? So specifically, what kind of capacity utilization have you been running through this tough time? And then how do you expect that to trend in the coming weeks? And then what kind of potential impact do you think you could see in Q2? And then finally, do you source any critical components from Hubei province, specifically?

第一個是關于冠狀病毒的情況。我只是想知道你是否可以給我們更多關於你設施地面上發生的事情的顏色？那麼具體來說，您在這段艱難時期的產能利用率如何？那麼您預計未來幾週的趨勢如何？那麼您認為您可以在第二季度看到什麼樣的潛在影響？最後，您是否特別從湖北省採購任何關鍵部件？

Right. So just to give you a quick thing, we make all our microinverters at Flex Fuyong, that's about 12 hours drive from Wuhan. We have done our homework in terms of raw materials, the supplier of the raw materials, et cetera. Most of our raw material suppliers are in Suzhou and Hangzhou, which are also a little bit away from Wuhan. From our diligence checks, our raw materials aren't -- they aren't affected. And so if I were to think about the entire situation in terms of priority, I would think the following: #1, is labor back in full force or not? The labor in our Flex factory is roughly about -- I would say, because of the reduced labor, our throughput is roughly 50% of the full capacity, which is still pretty good for us. And then the second priority or the second constraint that we think about is logistics. We hear that the outbound logistics from China is getting difficult. And so we are always watching our -- we are paying attention to that. The third is the raw materials that you pointed out, which we've done the homework. We think we are good there. The fourth is, obviously, we are doing this conference call so late, 7 weeks into the quarter. If the revenue guidance for the quarter is X, we have already shipped 7 over 13 times X right now. That's what I mean by, I am 100% linear. We have already shipped that revenue, 7 over 13 multiplied by X is what we have shipped. The last one is Guad. Guad is doing over 50,000 units a week. And of course, Guad depends on the raw material from China. And so there's always risk there, but we feel pretty good about that guidance right now. We have factored all of this situation in both revenue as well as gross margin guidance. And considering that we -- one of the data point is, we are fully booked to the guidance that we gave you. We are fully booked, we're 100% linear, we've done the homework in terms of raw materials, we are paying extraordinary attention to logistics and so at this time, we feel pretty good. If situation materially changes because of something that we don't know, then we'll come back to you. But that's what we know now.

正確的。所以，為了快速告訴您，我們所有的微型逆變器都是在偉創力福永製造的，那裡距離武漢大約 12 小時車程。我們在原材料、原材料供應商等方面都做了功課。我們的大部分原材料供應商都在蘇州和杭州，離武漢也有點遠。從我們的盡職調查來看，我們的原材料沒有——它們沒有受到影響。因此，如果我要從優先級的角度考慮整個情況，我會想到以下幾點：#1，勞動力是否全面恢復？我們 Flex 工廠的勞動力大約是——我想說，由於勞動力減少，我們的吞吐量大約是全部產能的 50%，這對我們來說仍然相當不錯。然後我們考慮的第二個優先事項或第二個約束是物流。聽說中國出境物流越來越難了。因此，我們一直在關注我們的——我們正在關注這一點。第三個是你指出的原材料，我們已經做了功課。我們認為我們在那裡很好。第四，很明顯，我們在本季度 7 週後才進行這個電話會議。如果本季度的收入指導是 X，我們現在已經出貨了 7 次，超過 13 次 X。這就是我的意思，我是 100% 線性的。我們已經交付了該收入，13 乘以 X 的 7 就是我們已經交付的收入。最後一個是瓜德。Guad 每週生產超過 50,000 個單位。當然，Guad 依賴於來自中國的原材料。所以風險總是存在的，但我們現在對這個指導感覺很好。我們在收入和毛利率指導中都考慮了所有這些情況。考慮到我們——其中一個數據點是，我們已經完全接受了我們給你的指導。我們已經訂滿了，我們是 100% 線性的，我們已經在原材料方面做了功課，我們非常重視物流，所以在這個時候，我們感覺很好。如果情況因為我們不知道的事情而發生重大變化，那麼我們會回來找你。但這就是我們現在所知道的。

Okay. But as it relates to Q2, I know you haven't provided official guidance. You talked to Brian about seasonality kind of being in line to slightly better than historical or something like that. What is the risk to Q2? Obviously, you've already shipped for Q1. So the question is, what's your view on how -- let's say, the current situation remains at this level, 50% of full capacity. How does that impact what you can deliver on Q2?

好的。但就第二季度而言，我知道你沒有提供官方指導。你和布賴恩談過季節性有點符合歷史或類似的東西。Q2的風險是什麼？顯然，您已經為第一季度發貨了。所以問題是，你如何看待 - 比方說，目前的情況保持在這個水平，即滿負荷的 50%。這對您在第二季度可以交付的產品有何影響？

In the current situation -- I mean, if the situation remains the same we'll be -- I don't think we'll be in -- and I don't think we'll have a problem for Q2, if it remains the same. The reason is, of course, we are making good progress in Mexico. That's starting to take the burden more and more. We are keeping a close eye on the raw materials. So all things being equal, if it were exactly the same in a few days from now when Q2 is beginning, I'm still pretty optimistic about Q2. But realize that things can change by the day. So that's all I can tell you right now, Phil.

在目前的情況下——我的意思是，如果情況保持不變，我們將——我不認為我們會進入——我認為我們不會在第二季度遇到問題，如果它保持不變。當然，原因是我們在墨西哥取得了良好進展。這開始承擔越來越多的負擔。我們正在密切關注原材料。因此，在所有條件都相同的情況下，如果從現在開始的第二季度開始後的幾天內情況完全相同，我對第二季度仍然非常樂觀。但要意識到事情每天都在變化。所以這就是我現在能告訴你的全部，菲爾。

Okay, great. No, that's very helpful. Shifting gears to pricing. I know you talked about that briefly. But historically, you guys have talked about, as you ship away from China and from Mexico that you'd pass along that pricing to customers. Earlier, call it, a few months ago, you were talking about maybe a price cut starting April 1 to pass that on to customers. It seems like in our recent checks with customers that you're not necessarily getting -- you haven't been actively talking about that. What's your view on a potential for price reduction? And at what point in time would you expect that to possibly happen?

好的，太好了。不，這非常有幫助。轉向定價。我知道你簡短地談到了這一點。但從歷史上看，你們已經談到，當你從中國和墨西哥發貨時，你會將價格傳遞給客戶。早些時候，幾個月前，你在談論可能從 4 月 1 日開始降價，以將其傳遞給客戶。在我們最近與客戶的核對中，您似乎不一定會得到——您並沒有積極談論這一點。您對降價的可能性有何看法？您預計這會在什麼時間點發生？

Right. Just so we are clear. When the supply chain right now is in turbulence due to the coronavirus, other suppliers are thinking about raising the prices, we are not. We basically value our customers this time. We think that they've already taken a lot of burden on the tariffs so we are not planning to raise prices. And it is not prudent for us to also drop prices without understanding the situation on the supply chain due to the virus. So if things stabilize, we will do exactly what I said, which is basically depending upon the percentage of manufacturing in Guad versus China. For North American shipments, we will basically reduce prices to that level. Okay? And that will happen sometime in Q3 if the situation gets stable in terms of the coronavirus. If not, we got to wait and watch.

正確的。這樣我們就清楚了。當現在供應鏈因冠狀病毒而動盪時，其他供應商正在考慮提高價格，而我們沒有。這次我們基本上重視我們的客戶。我們認為他們已經承擔了很多關稅負擔，因此我們不打算提高價格。在不了解病毒供應鏈情況的情況下，我們也降價是不明智的。因此，如果情況穩定下來，我們就會完全按照我說的去做，這基本上取決於瓜德與中國的製造業比例。對於北美出貨，我們基本上會把價格降到那個水平。好的？如果冠狀病毒的情況穩定下來，這將在第三季度的某個時候發生。如果沒有，我們必須拭目以待。

Our next question comes from Brad Meikle with Williams Trading.

我們的下一個問題來自 Williams Trading 的 Brad Meikle。

So your U.S. business grew 137% year-to-year in 2019. So can you give us some detail in terms of the level of inventories in the channel today versus a year ago so we can understand how much market share change that is because other checks are indicating that SolarEdge inventories are a lot higher in the channel than they were a year ago. And I know you get POS data on your inventory in the channel. So can you add any color on that, please?

因此，您的美國業務在 2019 年同比增長了 137%。那麼，您能否向我們提供一些關於今天渠道庫存水平與一年前相比的詳細信息，以便我們了解市場份額發生了多少變化，這是因為其他檢查表明 SolarEdge 渠道庫存比他們高得多是一年前。而且我知道您會在渠道中獲得有關庫存的 POS 數據。那麼你可以在上面添加任何顏色嗎？

Yes. We think the reasonable level of inventories to have is usually 8 to 10 weeks, and we try to maintain our channel inventory between 8 to 10 weeks, like what I pointed out in the last earnings call. But what you said is right. We have grown a lot in the last year, mainly the growth is because of our IQ 7 product, fantastic product. It's due to quality, it's due to customer experience. We have made a lot of announcements with Tier 1s. We have made a lot of announcements with the long-tail installers. We recently signed up Petersen-Dean and Sunrun as well. Things look good there.

是的。我們認為合理的庫存水平通常是 8 到 10 週，我們試圖將我們的渠道庫存維持在 8 到 10 週之間，就像我在上次財報電話會議上指出的那樣。但是你說的是對的。去年我們成長了很多，主要是因為我們的 IQ 7 產品，非常棒的產品。這是由於質量，這是由於客戶體驗。我們已經發布了很多關於 Tier 1 的公告。我們已經與長尾安裝程序一起發布了很多公告。我們最近還簽下了 Petersen-Dean 和 Sunrun。那裡的情況看起來不錯。

So as long as we don't take our eye off the ball in terms of customer experience, I believe we will continue to take share.

因此，只要我們在客戶體驗方面不放過眼球，我相信我們會繼續分享。

Can you quantify at all what that market share is today in U.S. residential versus a year ago?

您能否量化今天美國住宅市場份額與一年前相比的情況？

I mean, we don't really track -- we don't really think market share. We control the inputs, but we don't really track the output. So it would be -- I don't know the number, and I'm not going to give out a number that I'm not standing by. Okay?

我的意思是，我們並沒有真正追踪——我們並沒有真正考慮市場份額。我們控制輸入，但並不真正跟踪輸出。所以它會是——我不知道這個數字，我不會給出一個我不支持的數字。好的？

Thanks. Yes, I mean, that's obviously a big number, given that the market is growing at 25%, and you grew at 137% without much inventory growth. So what about stores? Can you add any more color on the beta installs? However, many 500, 800 that have been done? What your feedback has been from the customers? Have you gotten follow on orders? It sounds like April is when production volumes really start-up. Can you give us a sense for -- I know there is 1.5 days training required for installer. Can you give us some level of understanding of what the ramp-up might be? Just kind of how -- I know it's a new business, but what does it seem like at this point?

謝謝。是的，我的意思是，這顯然是一個很大的數字，因為市場以 25% 的速度增長，而你在沒有太多庫存增長的情況下以 137% 的速度增長。那麼商店呢？你能在測試版安裝上添加更多顏色嗎？但是500多，800那已經做了？您從客戶那裡得到了什麼反饋？你有跟進訂單嗎？聽起來四月是產量真正開始的時候。你能告訴我們——我知道安裝人員需要 1.5 天的培訓。您能否讓我們對增長可能是什麼有一定程度的了解？只是怎麼樣 - 我知道這是一項新業務，但在這一點上它看起來像什麼？

Yes, just to get our terminologies straight, right now, we are doing what are called as alphas. Alphas are basically near and dear people -- is what we are doing. And like what I said -- so Eric's house, my house, Raghu's house are all running full Ensemble. And that's what we have done. So we are giving feedback to the team. There aren't any major issues. There are always minor, in our (inaudible) issues that are there in this. Now coming to the second thing is the training, the training of installers. We have trained all our beta installers. So they are our -- what we call as the embassadors that we trained in the first round. So we have trained about 70 installer personnel and 22 installation companies. These form our beta network. And essentially, in the first week of March, they will start installing -- or in the second week of March, they will start installing beta systems, and we are going to get further feedback from that. By that time, our compliance will also be done. And so we'll be in a very good position in order to ship the product. But in terms of the performance of the product, we are actually exercising it. Like in my house, like what I said this morning, I was off-grid for about 6 hours. And everything was fine. And I didn't even -- someone had flipped my app to go from on-grid to off-grid, so we can enter it through the app. And they were doing a test on my house, and I didn't even know that I was off-grid. That's a big deal. If I can make that customer experience seamless, it's all going to be that. We can make that customer experience seamless, I think -- so there is a lot of upside here.

是的，為了弄清楚我們的術語，現在，我們正在做所謂的 alpha。阿爾法基本上是親近的人——這就是我們正在做的。就像我說的那樣——所以 Eric 的房子、我的房子、Raghu 的房子都在運行完整的 Ensemble。這就是我們所做的。所以我們正在向團隊提供反饋。沒有任何重大問題。我們的（聽不清）問題中總是存在一些小問題。現在第二件事是培訓，安裝人員的培訓。我們已經培訓了所有測試版安裝人員。所以他們是我們的——我們稱之為我們在第一輪培訓的大使。所以我們培訓了大約70名安裝人員和22家安裝公司。這些構成了我們的測試網絡。基本上，在 3 月的第一周，他們將開始安裝——或者在 3 月的第二週，他們將開始安裝測試版系統，我們將從中獲得進一步的反饋。到那時，我們的合規性也將完成。因此，我們將處於非常有利的位置來運送產品。但是在產品的性能上，我們其實是在鍛煉。就像在我家一樣，就像我今天早上說的，我有大約 6 個小時沒有上網。一切都很好。我什至沒有——有人將我的應用程序從並網狀態切換到離網狀態，這樣我們就可以通過該應用程序進入了。他們正在對我的房子進行測試，我什至不知道我已經斷電了。這是一個大問題。如果我能讓客戶體驗無縫，一切都會如此。我認為，我們可以讓客戶體驗無縫——所以這裡有很多好處。

Our next question comes from Jeffrey Campbell with Tuohy Brothers

我們的下一個問題來自 Jeffrey Campbell 和 Tuohy Brothers

Congratulations on the strong quarter. Badri, at the Analyst Day, it was said that other than possibly the price that DC can't compete with Enphase, and that's what had me thinking about the IQ 8D and the small commercial solar. Just thinking, even with a higher unit ASP, the IQ 8D reduction in components should see system costs come down relative to the IQ 7. So is it fair to think of it that way? And could the IQ 8D be the first Enphase macro that will benefit from quality service and cost competitiveness?

祝賀強勁的季度。Badri，在分析師日，據說除了 DC 可能無法與 Enphase 競爭的價格外，這就是讓我想到 IQ 8D 和小型商業太陽能的原因。試想一下，即使單位 ASP 更高，IQ 8D 組件的減少也應該使系統成本相對於 IQ 7 下降。這樣想是否公平？IQ 8D 能否成為第一個受益於優質服務和成本競爭力的 Enphase 宏？

Well, yes, but it's not because of the reason you said. Our architecture is a scalable architecture, fully resonant architecture. So we are able to -- what we told you in the Analyst Day is that the power density for our product is 50% higher for IQ 8D than IQ 8, which means we are able to pack a lot more power in the same form factor. And of course, that translates into cost. So of course, we are going to be competitive, but we do not price on cost. We price on value. What is the differentiation with respect to our next best alternative. We'll have to look at what is in the competition, and what value are we specifically providing. Is it higher quality? Is it better customer experience? Is it better installation? Less labor? All of those factors need to be looked at, and then we will price our products.

嗯，是的，但這不是因為你說的原因。我們的架構是一個可擴展的架構，完全諧振的架構。所以我們能夠——我們在分析師日告訴你的是，我們產品的功率密度 IQ 8D 比 IQ 8 高 50%，這意味著我們能夠在相同的外形尺寸中封裝更多的功率.當然，這會轉化為成本。所以當然，我們將具有競爭力，但我們不按成本定價。我們按價值定價。關於我們的下一個最佳選擇的區別是什麼。我們必須看看競爭中有什麼，以及我們具體提供了什麼價值。它的質量更高嗎？是不是更好的客戶體驗？是不是更好安裝？更少的勞動力？所有這些因素都需要考慮，然後我們將為我們的產品定價。

Okay. Well, that's very helpful. And then I also want to ask about the CREATON partnership that you sent a press release out on recently. It looks like it's a large operation. There's 8 factories. But I have no sense of how large the clay tile rooftop market is or CREATON's place in that market. So some color there would be helpful. And I also wondered if the installer relationships in Enphase will build through CREATON, can go beyond clay tile installation?

好的。嗯，這很有幫助。然後我還想問一下您最近發布新聞稿的 CREATON 合作夥伴關係。看起來這是一個大手術。有8個工廠。但我不知道粘土瓦屋頂市場有多大，也不知道 CREATON 在該市場中的地位。所以一些顏色會有幫助。我也想知道Enphase中的安裝者關係是否會通過CREATON建立，是否可以超越粘土磚安裝？

Yes. The idea is very neat, right? If you basically have in-roof solar, and you do it for new homes, you would think that it can -- it -- yes, it basically can catch on like wildfire, right? But this is an entirely brand-new market. We have not seen it take off. I expect it will be a slow and steady growth so because we are introducing it in a mature country like Germany. And Germany is very strict on quality, is very strict on customer experience. They wouldn't ramp something as fast. It's going to be in a measured way, but the advantages are very, very clear. It's an AC roof. It basically standardizes everything, and it will reduce the cost of an installation. It -- by definition, the modules are built in the factory, including the microinverters, so quality is going to be very high. And it's all-in-all, a good experience for the installer. So the installers, obviously, they want it. But yes, at this point, it's too early for us to talk about the ramp.

是的。這個想法很巧妙，對吧？如果你基本上有屋頂太陽能，並且你為新房這樣做，你會認為它可以 - 它 - 是的，它基本上可以像野火一樣流行，對吧？但這是一個全新的市場。我們還沒有看到它起飛。我預計這將是一個緩慢而穩定的增長，因為我們正在將它引入像德國這樣的成熟國家。德國對質量非常嚴格，對客戶體驗非常嚴格。他們不會那麼快地增加東西。它將以一種有節制的方式進行，但優勢非常非常明顯。這是一個交流屋頂。它基本上使一切標準化，並且會降低安裝成本。它——根據定義，模塊是在工廠製造的，包括微型逆變器，所以質量會非常高。總而言之，對安裝人員來說是一次很好的體驗。所以安裝人員，顯然，他們想要它。但是，是的，在這一點上，我們現在談論坡道還為時過早。

Our next question comes from Eric Stine with Craig-Hallum.

我們的下一個問題來自 Eric Stine 和 Craig-Hallum。

A few quick questions here at the end. Maybe just on Tier 1 customers. I know a couple of years back that you took the action to kind of step away there, and late last year, picked up Sunrun. These new safe harbor customers that you referenced, just curious what kind of contribution you expect from those customers as they come back in 2020? Is it meaningful in 2020 and more of a 2021 event? Or do you expect that it could impact 2020 nicely?

最後這裡有幾個簡單的問題。也許只是針對一級客戶。我知道幾年前你採取了某種行動離開那裡，去年年底，選擇了 Sunrun。您提到的這些新的安全港客戶，只是好奇您期望這些客戶在 2020 年回來時做出什麼樣的貢獻？它在 2020 年和 2021 年的活動中有意義嗎？還是您認為它會很好地影響 2020 年？

Yes, we did the safe harbor with Sunrun in Q4. And we are doing safe harbor in Q1 with a couple of customers who are not new, who are our existing customers. The answer to your question is, we expect them to use a lot of the safe harbor material, but that doesn't mean that they wouldn't place additional orders in the quarters. Of course, the orders will be in the reduced magnitude, but I think they'll still be sizeable. That's what I think.

是的，我們在第四季度與 Sunrun 一起做了安全港。我們在第一季度與一些不是新客戶的客戶一起做安全港，他們是我們的現有客戶。你的問題的答案是，我們希望他們使用大量安全港材料，但這並不意味著他們不會在季度內下額外的訂單。當然，訂單數量會減少，但我認為它們的數量仍然很大。那就是我所想的。

Okay. Got it. And maybe last one for me. Just on -- I know it's early here in the new year, but the new home mandate in California, whether you're starting to see an impact? Or how maybe your view has changed or starting to become more clear? And then just curious, I mean, do you have in mind kind of a share of that market since you're partnered with SunPower and the Petersen-Dean relationship?

好的。知道了。也許對我來說是最後一個。剛好——我知道現在是新年伊始，但是加州的新居家令，你是否開始看到影響？或者您的觀點可能如何改變或開始變得更加清晰？然後很好奇，我的意思是，自從您與 SunPower 合作並建立了 Petersen-Dean 關係後，您是否考慮過在該市場中佔有一席之地？

I mean, it's one where here I have to rely on our partners, like SunPower, like Petersen-Dean, like Lennar Homes, these are our partners. They are our front-end to the homeowners -- I mean, to the home builders. And so we expect to do really well because of our partnership with SunPower here, and our partnership with Petersen-Dean. And like our solution, imagine a house being fitted with -- like, for example, in the case of Petersen-Dean case, imagine a house being fitted with an all-in-one solar and storage system with the beautiful Encharge and the Enphase solar system. That's going to be an amazing customer experience for them.

我的意思是，這是我必須依賴我們的合作夥伴的地方，比如 SunPower，比如 Petersen-Dean，比如 Lennar Homes，這些都是我們的合作夥伴。他們是我們對房主的前端——我的意思是，對房屋建築商來說。因此，由於我們在這裡與 SunPower 的合作夥伴關係，以及我們與 Petersen-Dean 的合作夥伴關係，我們希望做得很好。就像我們的解決方案一樣，想像一所房子配備了——例如，在 Petersen-Dean 的案例中，想像一所房子配備了一個帶有漂亮的 Encharge 和 Enphase 的一體式太陽能和儲能係統太陽系。這對他們來說將是一次了不起的客戶體驗。

Got it. So this is -- I mean, some things -- I mean, it hasn't changed either way? You still think it's a big opportunity and maybe still too early to tell the magnitude?

知道了。所以這是——我的意思是，有些事情——我的意思是，它沒有改變嗎？您仍然認為這是一個巨大的機會，也許現在說它的重要性還為時過早？

Absolutely. I mean, it's a nice opportunity for us. We are ideally placed because many of these will be small systems. And in these small systems -- and the whole point of microinverters is, I can do small systems very easily. Whole point of Encharge is, I can do modularity, flexibility, very easily. I can do 3.3-kilowatt hour, 6.6, 9.9 or 10-kilowatt hour. Yes. And I can add chunks later depending upon the the customer's need. For example, Raghu has got a 10-kilowatt hour system, he wants to add 2 more 3.3s. I have a 16.8-kilowatt hour system, Eric has got a 20-kilowatt hour system. So each of us are different. And the modularity really helps us to fine-tune exactly what we want.

絕對地。我的意思是，這對我們來說是一個很好的機會。我們處於理想的位置，因為其中許多將是小型系統。在這些小型系統中——微型逆變器的全部意義在於，我可以非常輕鬆地構建小型系統。Encharge 的重點是，我可以非常輕鬆地實現模塊化、靈活性。我可以做到 3.3 千瓦時、6.6、9.9 或 10 千瓦時。是的。我可以稍後根據客戶的需要添加塊。例如，Raghu 有一個 10 千瓦時的系統，他想再增加 2 個 3.3。我有一個 16.8 千瓦時的系統，Eric 有一個 20 千瓦時的系統。所以我們每個人都是不同的。模塊化確實幫助我們精確調整我們想要的東西。

(Operator Instructions) Our next question comes from Sameer Joshi with H.C. Wainright.

（操作員說明）我們的下一個問題來自 H.C. 的 Sameer Joshi。溫賴特。

What are the products that are being pushed in Europe? Are they IQ 7 and 7+ based? Or are you pushing for IQ 8 as well there?

在歐洲推廣的產品有哪些？他們是 IQ 7 和 7+ 嗎？或者你也在推動 IQ 8 嗎？

Most of Europe right now today is 72-cell -- yes, 72-cell modules, I believe. And so that's basically IQ 7+ and IQ 7 are the predominant sales in Europe.

現在歐洲大部分地區都是 72 電池——是的，我相信是 72 電池模塊。因此，基本上 IQ 7+ 和 IQ 7 是歐洲的主要銷量。

Okay. Coming to the safe harbor sales, are the gross margins similar -- is the gross margin profile similar for safe harbor versus non safe harbor sales?

好的。談到安全港銷售，毛利率是否相似——安全港銷售與非安全港銷售的毛利率情況是否相似？

Well, since we are actually shipping to Tier 1, the gross margins themselves are a little bit lower. But as you can see, we have made extraordinary improvements in gross margin. So you can see, despite our huge shipments, our safe harbor in Q4, our gross margin increased from Q3 to Q4.

好吧，由於我們實際上是運送到一級，毛利率本身有點低。但正如您所看到的，我們在毛利率方面取得了非凡的進步。所以你可以看到，儘管我們的出貨量很大，我們在第四季度的安全港，我們的毛利率從第三季度增加到第四季度。

Same with the midpoint of the guidance for Q1, right? You've got a referencing point there, either the low-end or high-end of the range or in all cases.

與 Q1 指南的中點相同，對嗎？你在那裡有一個參考點，範圍的低端或高端或在所有情況下。

Yes. In all cases, it's pretty healthy.

是的。在所有情況下，它都非常健康。

Understood. Moving down the operating expenses, the G&A costs or rather, overall OpEx costs that have been guided for 1Q, are they representative of the rest of the year? Or do they have -- does the first quarter have some extra stock based comp?

明白了。降低運營費用，G&A 成本，或者更確切地說，第一季度指導的總體運營支出成本，它們是否代表了今年剩餘時間？或者他們是否有 - 第一季度是否有一些額外的基於股票的補償？

Yes. So most of the infrastructure investment that we need to make for the headquarters, many of the IT improvements that we need to do actually will hit OpEx. So what I will say is that we provided the guidelines of 15% of revenue. And our view is that the way you guys, who model it, is by taking down one as your kind of baseline, and then it could be a little bit better than that. But for the most part, you should consider that to be an investment line through R&D increases, a little bit of the sales in Europe and some of the IT infrastructure, security, things that we need to do as a company. That in the old days, those used to be CapEx. Most of the subscription base or license-based IT investment that we need to make are now P&L -- here in the P&L. So that's the way we're going to be subsidizing through the P&L in the form of investment in our infrastructure growth and supporting the growth.

是的。因此，我們需要為總部進行的大部分基礎設施投資，我們需要做的許多 IT 改進實際上都會影響 OpEx。所以我要說的是，我們提供了收入的 15% 的指導方針。我們的觀點是，你們建模的方式是將一個作為你的基線，然後它可能會比這更好一點。但在大多數情況下，你應該將其視為通過研發增加的投資線、歐洲的一些銷售和一些 IT 基礎設施、安全性，以及我們作為一家公司需要做的事情。在過去，那些曾經是資本支出。我們需要進行的大部分訂閱基礎或基於許可證的 IT 投資現在都是 P&L——在 P&L 中。因此，這就是我們將以投資基礎設施增長和支持增長的形式通過 P&L 進行補貼的方式。

Understood. And just maybe one last one. Clarification on the ASP per units per inverter? If I do a back of envelope calculation based on your revenues and total number of units sold, it seems that the ASP has actually reduced over the last several quarters. I know it is not an accurate way of looking at it, but is this trend expected to continue?

明白了。也許只是最後一個。澄清每台逆變器的平均售價？如果我根據您的收入和售出單位總數進行粗略計算，似乎 ASP 在過去幾個季度實際上有所下降。我知道這不是一種準確的看待方式，但這種趨勢預計會持續下去嗎？

No. I mean, it's not an accurate way of looking at it. It basically depends -- the way you look at it, your calculation, take revenue, overall revenue divide it by the number of microinverters, is not the real story. Because, for example, if we we do ship our AC batteries, which are a first generation battery, each of them has got an ASP of $1,000. So we've not breaking those. But your calculation includes those. If we ship a lot of cables, for example, if we ship a disproportionate amount of cables, the overall revenue will actually come down. If you ship -- I mean, the overall ASP will actually come down. So it's heavily dependent on mix. But what I can tell you is this, we pay very close attention on what we call as customer variant. Then we reduce price at a customer -- at a specific customer and calculate that. And we rolled that up, and those numbers are actually very, very less. So there's really -- pricing is very healthy, pricing is flat. And except for what I talked about in terms of the Guad transition, we don't see many changes to pricing.

不。我的意思是，這不是一種準確的看待它的方式。這基本上取決於——你看待它的方式、你的計算、收入、總收入除以微型逆變器的數量，這不是真實的故事。因為，例如，如果我們確實運送我們的交流電池，這是第一代電池，每個電池的平均售價為 1,000 美元。所以我們沒有打破這些。但是你的計算包括那些。如果我們出貨很多電纜，例如，如果我們出貨的電纜數量不成比例，那麼總收入實際上會下降。如果你出貨——我的意思是，整體平均售價實際上會下降。所以它在很大程度上依賴於混合。但我可以告訴你的是，我們非常關注所謂的客戶變體。然後我們降低客戶的價格 - 針對特定客戶併計算。我們把它匯總起來，這些數字實際上非常非常少。所以真的 - 定價非常健康，定價持平。除了我在 Guad 過渡方面談到的內容外，我們沒有看到定價有太多變化。

We feel it's good for them to model some price erosion on their models, right? We always recommend that, right?

我們覺得在他們的模型上模擬一些價格侵蝕對他們有好處，對吧？我們總是建議這樣做，對嗎？

We always model 1% to 2% for our modeling. So that's the right way to think about it.

我們總是為我們的建模建模 1% 到 2%。所以這是思考它的正確方法。

And will get a little bit more complicated with Ensemble coming on board, right? So we will provide some help, hopefully, for you guys to model when the meaningful revenue of Ensemble starts to become more clear, right?

隨著 Ensemble 的加入，會變得更複雜一些，對吧？因此，當 Ensemble 的有意義的收入開始變得更加清晰時，我們將提供一些幫助，希望能為你們建模，對嗎？

Yes.

是的。

Our next question comes from Pavel Molchanov with Raymond James.

我們的下一個問題來自 Pavel Molchanov 和 Raymond James。

In its midterm review, the International Trade Commission talked about potentially adjusting or even setting aside the Section 201 tariff. As it relates to the AC module relationships you have, is there any read through depending on what the decision will be?

在中期審查中，國際貿易委員會談到可能調整甚至擱置 201 條款關稅。由於它涉及到您擁有的 AC 模塊關係，是否有任何通讀取決於決定是什麼？

No, I think there was a lot of discussion about it, but we have not heard any more discussion on the (inaudible) tariffs going away. And we also know that there's exclusions there. So I don't believe that, that's in play right now.

不，我認為對此有很多討論，但我們沒有聽到更多關於（聽不清）關稅消失的討論。我們也知道那裡有例外情況。所以我不相信，這正在發揮作用。

We -- most of our volume business with SunPower already excluded. So...

我們 - 我們與 SunPower 的大部分批量業務已經排除在外。所以...

Understood. And you've already asked about one of the new entrants, Generac, if I may, let me ask about another one, LG. Can you confirm whether LG is currently a customer for your microinverter as a component to LG's integrated module product?

明白了。你已經問過其中一個新進入者 Generac，如果可以的話，讓我問另一個 LG。您能否確認 LG 目前是否是您的微型逆變器的客戶，作為 LG 集成模塊產品的組件？

No, they are not a customer.

不，他們不是客戶。

And that concludes our Q&A session. I would now like to turn the call back over to Badri Kothandaraman for any further remarks.

我們的問答環節到此結束。我現在想將電話轉回給 Badri Kothandaraman，以徵求任何進一步的意見。

So thank you for joining us today, and for your continued support of Enphase. We look forward to speaking with you again during our Q1 2020 earnings call in April. Okay. Thank you.

感謝您今天加入我們，感謝您對 Enphase 的持續支持。我們期待在 4 月份的 2020 年第一季度財報電話會議上再次與您交談。好的。謝謝。

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。